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HomeMy WebLinkAbout07951 ORD - 03/16/1966VMP:2/8/66 r4 AN ORDINANCE AUTHORIZING AND DIRECTING THE CITY MANAGER TO EXECUTE, FOR AND ON BEHALF OF THE CITY, AN OIL AND GAS LEASE ON 87:252 ACRES OF LAND LOCATED OUT OF LOTS 5 AND 6, SEC- TION 3, BOHEMIAN COLONY LANDS, NUECES COUNTY, TEXAS, WITH B. V. BALLENGEE, FOR A FIVE -YEAR PERIOD, BEGINNING APRIL 15, 1966, AND EXPIRING APRIL 14, 1971, FOR A CASH BONUS IN ADDITION TO ALL OTHER CONSIDERATION SET OUT IN THE LEASE FORM, TO "BE PAID IN ADVANCE, ALL AS MORE FULLY SET OUT IN THE LEASE AGREEMENT, A COPY OF WHICH IS ATTACHED HERETO AND MADE A PART HEREOF. WHEREAS, THE OITY COUNCIL HAS HERETOFORE ADOPTED SPECIFICATIONS AND DULY MADE PUBLICATION AS REQUIRED BY CHARTER AND RECEIVED BIDS ON JANUARY 26, 1966; AND WHEREAS, THE BID MOST ADVANTAGEOUS TO THE CITY, AFTER CONSIDERATION OF ALL BIDS SUBMITTED, AND DETERMINED AS THE HIGHEST AND BEST BIDDER SUBMIT- TING A BID ON THE BASIS PRESCRIBED IN THE NOTICE FOR BIDS, IS THE BID OF B. V. y t BALLENGEE FOR A PRIMARY TERM OF FIVE (5) YEARS: NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. THAT THE CITY MANAGER IS HEREBY AUTHORIZED kND DIRECTED, TO EXECUTE, FOR AND ON 87.252 OF THE CITY, AND TO DELIVER THE SAME, AN OIL AND GAS LEASE COVERING 87.252 ACRES OF LAND, LOCATED OUT OF LOTS 5 AND 6, SECTION 3, BOHEMIAN COLONY LANDS, NUECES COUNTY, TEXAS, SAID LEASE TO BE WITH B. V. BALLENGEE, COVERING A FIVE —YEAR PERIOD, BEGINNING APRIL 15, 1966,,AND EXPIRING APRIL 14, 1971, FOR A CASH BONUS OF $9,136, THE RECEIPT OF WHICH IS ar ACKNOWLEDGED BY THE CITY, ALL OF WHICH TERMS ARE MORE FULLY SET FORTH IN THE LEASE AGREEMENT, A COPY OF WHICH IS ATTACHED HERETO AND MADE A PART HEREOF. 7951 , OIL AND GAS LEASE THE STATE OF TEXAS 4 COUNTY OF NUECES THIS AGREEMENT made this 15mHdaa of APRI 1966, between the City of Corpus Christi, Lessor, and g,V'.B- LteNaee or 'NilEGE$ Gl111NTp Lessee, W I T N E S S E T H: • • TEXAS 1. Lessor, in consideration of a cash bonus of r4 (E400004(xXXXXXXXXXWM4000004m6000scobaNdoop.utxmotwoOolummlan cash in hand paid and other good and valuable consideration,'of the royalties herein provided, and r on the agreements of Lessee herein contained, hereby grants, leases, and lets ex- elusively unto Lessee for the purpose of investigating, exploring, prospecting, drill- , c ing and mining for and producing oil and gas, laying pipe lines and building tanks, to produce, save,'take care of, treat; transport, and.own said products, the follow- ing described. land in Nueces County, Texas, to -wit: 87.252 acres of land out of Lots 5 and 6, Section 3, BOHEMIAN COLONY LANDS, Nueces County, Texas, more particularly described by metes and bounds as follows, to -wit: rk A a. BEGINNING at a point in the Northeast right of way line of 40 foot wide Holly -Road said point being N 29° 00' 20" E, 60.0 feet from the most Southerly corner of Lot 5, Section 3, Bohemian Colony Lands, THENCE N 61° 30' W with said Northeast right of way line of Holly Road, a dis- tance of 709.83 feet to a point for the most Southwesterly corner of the tract herein described; THENCE N 29° E with the Southeast boundary line of Big Three Welding Equipment ,Company 9.3 acre tract, a distance of 781.69 feet to a point for an interior ' corner of the tract herein described; THENCE N 61° 30' W with the Northeast boundary line of said 9.3 acre }tract a distance of 518.60 feet to a point for a corner of the tract herein described; THENCE N 29° E a distance of 332.0 feet to a point for an interior corner4of s the tract herein described; THENCE N 61° 30' W a distance of 315.0 feet to a point for a corner of the tract herein described; THENCE N 29° E a distance of 524.33 feet to a point for an interior corner of•# the tract herein described; THENCE N 61° 30' W a distance of 1050.00 feet to a point in the Southeast right of:way line of 100.0 foot wide Ayers Street for a corner of this tract; THENCE N 29° E with the Southeast right of way line of said Ayers Street a distance of 286.93 feet to a point for a corner of this tract, same being the Southwest corner of the Hygeia 5.0 acre tract; 4 i THENCE S 61° 16' 30" E with the Southwest boundary line of said 5.0 acre tract a distance of .713.60 feet to a point for an interior corner of the tract herein 7 described; THENCE N,29° E with the Southeast boundar% fine of said 5.0 acre tract and itsn extnsion, a distance of 367.0 feet to a point for an interior corner of the tract herein described; Y THENCE N 61° 16° 30" W a distance of 328.0 feet to a point for a corner of this tract, said point being the'Southeast corner of the Louis Needham 2.6 acre tract; THENCE N-'29 °'E with the Southeast boundary line of said 2.6 acre tract 'gills- tance o4143.25 feet to a point for a corner of this tract, said point-being the Southwest corner of Lot 5 Lexington Subdivision Annex as shown by map or plat of record in Volume 26, page 413,Nueces County, Texas, Map Records; : THENCE s 61° 16' 30" E with the;;Southwest boundary line of said Lot 5 and Lot 6, Lexington Subdivision Annex a distance of 278.00 feet to a point for a corner of r this tract, said point being the Southeast corner of said Lot 6, Lexington Sub - n division Annex; • THENCE N 29° E with the Southeast boundary line of said Lot 6, Lexington Sub- division Annex, a distance of 147.21 feet to a point in the common boundary line of Lots 6 and 7,' Section 3 of said Bohemian Colony Lands for a corner of this tract; THENCE S 61° 30' 10" Eiwith said common boundaryfline of said Lots 6 and 7 Section 3 Boheni an Colony Lands a distance of 1930.11 feet to the common corner - of Lots 6, 7, 2 and 3 Section 3 Bohemian Colony Lands for a corner of xthis tract; THENCE 5 ; 290 00' 20" W with the Southeast boundary line of said Lots 6 and•5 Section 3 Bohemian Colony Lands a distance of 2579.80 feet to the place of beginning. t Lessee or his assigns. shall conduct no drilling operations or other operations on the surface of the land hereby leased nor within three hundred * feet (300') of the land hereby leased unless and until the approval of the Lessor' 4 j 44 1, is secured as to the actual location on said property and the actual op rations to be conducted prior to the commencement of such operations. 2. Subject to the other provisions herein contained, this lease shall be for a term of five (5) years from this date (called "primary term ") and as long thereafter as oil, gas or other mineral is produced from said land hereunder. 3. The royalties to be paid Lessor are (a) on oil, no less than AMA S I XTEEN'(HS / \3i 6) sXXXXXWof that produced and saved from said land, the same to be,delivered at,, the wells or tt the credit of Lessor into the pipe line to which the wells may be ' connected; Lessee may from time to time purchase any royalty oil in its possession, paying the market price therefor prevailing for the field where produced on the .,date of purchase;.(b) on gas, including casinghead gas or other gaseous substance, produced from said land and sold or used off the premises or in the manufacture of gasoline or`other product therefrom, the market value at the well of no less than THREE ■SIXTEENTHS (3/16) oXX.7HtaiX100(X 7of the,gas so sold or used, provided tha, on gas sold at the wells THREE••SIXTEENTHS 1 the royalty'shall be no less than di iN4$;q9chWof- the.emount realized from such sale; where gas from a well producing gas only is not sold or used, Lessee may, for a maximum'of two (2) years beyon&the primary term, pay as royalty # TWELVE HUNDRED (0200.00) Dollars per well per year, and upon such payment it will be considered that gas is being produced within the meaning of Paragraph 2 hereof for such period, not exceeding two years beyond the primary term. Lessee shall have free use of oil and gas from said land, for all opera- • tions hereunder, and the royalty on oil and gas shall be computed after deducting any so used. Lessor is exempt as a matter of law from any and all State of Texas 4 severance taxes on oil and gas, and no deductions shall be made for severance taxes in royalty settlements. • p. 14 4 4. Lessee is hereby given the right and power to pool or combine the land covered by this lease or any portion thereof for gas or oil with any other land, lease or leases located adjacent to or contiguous with, when in Lessee's _ , judgment it is necessary or advisable to do so in order to properly develop and operate said premises, and upon notifying Lessor, provided that no unit for gas so created shall exceed 320 acres in area and no unit for oil shall 'exceed 40 acres in area. If production is found on the pooled acreage, it shall` - -be treated as if production is had from this lease, whether the well or wells be located on the premises covered by this lease or not. In lieu of the royalties elsewhere herein specified, Lessor shall receive on production from a unit so pooled only such portion of the royalty stipulated herein Is the amount of his acreage placed tic- in the unit or his royalty interest therein bears to the total acreage•so pooled in the particular unit involved, but in no event less than $ TWELVE HUNDRED (*1200) yl DOLLARS .. in any one year. 5. If operations for drilling are not commenced on said land on or before six months from this-date the lease shall terminate as to both parties unless on or before such anniversary date Lessee shall pay, or tender to Lessor or to the credit of Lessor in Corpus Christi State National Bank at Corpus • Christi, Texas, (which Bank and its successors are Lessor's agent and shall continue as the depository for all rentals payable hereunder regardless of changes in ownership of said land or the rentals) the sum of FOUR HUNDRED THIRTY ..51X AND 261100 Dollars ($ 436.20, (herein called rental), which shall cover the privilege-Of deferring commencement of drilling operations for a period of i six (6) months. In like manner and upon like payments or tenders semi - annually A the commencement of drilling operations may be further deferred for successive periods of six (6) months each during the primary term. The payment or tender of rental may be made by the check or draft of Lessee mailed or delivered to said Bank on or before such date of payment. If such Bank (or any successor Bank). should fail, liquidate or be succeeded by another Bank, or for any reason fail or refuse to accept rental, Lessee shall not be held in default for failure to g. make such payment or tender of rental until thirty (30) days after Lessor shall t m deliver to Lessee a proper recordable instrument, naming another Bank as Agent to receive such payments or tenders. The down cash payment is consideration for this lease according to its terms and shall not be allocated as mere rental for a period. By the term "operations for drilling" and "drilling operations" is meant the actual drilling into the earth in'a bonafide attempt to discover oil, gas or other minerals and not merely the placing of materials and /or equipment on the land. 6. If prior to discovery of oil or gas on said land Lessee should drill a dry hole or holes thereon, or if after discovery of oil or gas the pro- duction thereof should cease from any cause, this lease shall not terminate if Lessee commences additional drilling or re- working operation ns within sixty (60) days thereafter or (if it be within the primary term) commences or resumes the payment or tender of rentals on or before the rental paying date next ensuing after the expiration of three months from date of completion of dry hole or cessation of production. If at the expiration of the primary term oil, gas or other mineral is not being produced on said land but Lessee is then engaged in drilling or re- workingd'operations thereon, the lease shall remain in force so long as operations are prosecuted with no cessation of more than thirty (30) consecutive days, and if they result in the production of oil or gas so long thereafter as oil or gas is produced from said land. In the event a well or wells producing oil or gas in paying quantities should be brought in on adjacent land and within 467 feet of or draining the leased premises, Lessee agrees to drill such offset wells as a reasonably prudent operator would drill under the same or similar circumstances. . 7. Lessee shall have the right at any time during or within six (6) months of the expiration of this lease to remove all property and fixtures placed by Lessee on said land, including the right to draw and remove all casing. Lessee shall bury all pipe lines 36 inches below the surface, and no well shall be drilled within two hundred (200) feet of any structure on said land without Lessor's consent. 8. The rights of either party hereunder may be assigned in whole or in part and the provisions hereof shall extend to the heirs, successors, and assigns, but no change or divisions in ownership/ of the land, rentals, or royalties, however accomplished, shall operate to enlarge the obligations or diminish the rights of Lessee. No sale or assignment by Lessor shall be binding on Lessee until Lessee shall be furnished with a certified copy of recorded instrument evidencing same. In event of assignment of this lease as to a segregated portion of said land, the rentals payable hereunder shall be apportionable as between the several lease- hold owners ratably according to the surface area of each, and default in rental payment by one shall not affect the rights of other leasehold owners hereunder. If six or more parties become entitled to royalty hereunder, Lessee may withhold payment thereof unless and until furnished with a recordable instrument executed by all such parties designating an agent to receive payment, for all. 9. Lessor hereby warrants and agrees to defend the title to said land and agrees that Lessee at its option may discharge any tax, mortgage or other lien upon said land and in event Lessee does so, it shall be subrogated to such lien with the right to enforce same and apply rentals and royalties accruing hereunder toward satisfying same. Without impairment of Lessee's ig under rights the warranty in event failure of title, it is agreed that if Lessor owns an interest in said land less than the entire fee simple estate, then the royalties and rentals to be paid Lessor shall be reduced proportionately. 10. Should Lessee be prevented from complying with any express or implied covenant of this lease, from conducting drilling or re- working opera- tions thereon or from producing oil or gas therefrom by reason of scarcity of or inability to obtain or to use equipment or material, or by operation of force c, majeure, any Federal or State law or any order, rule or regulation of govern- mental authority, then while so prevented through.no fault of Lessee, Lessee's obligation to comply with such covenant shall be suspended, and Lessee shall not be liable in damages for failure to comply therewith; and this lease shall be extended while and so long as Lessee is prevented by any such cause from conduct- ing drilling or re- working operations or or from producing oil or gas from the leased premises and the time while Lessee is so prevented shall not be counted against Lessee, anything in this lease to the contrary notwithstanding. IN WITNESS WHEREOF, this instrument is executed in duplicate on the date first above written. ATTEST: CITY OF CORPUS CHRISTI By City Secretary Herbert W. Whitney City Manager APPROVED AS TO LEGAL FORM THIS .00-DAY OF ��,ll. eri , 1966. LESSOR 1040 ' City Att f he/ THE STATE OF TEXAS COUNTY OF NUECES LESSEE B. V. BALLENGEE BEFORE ME, the undersigned authority, on this day personally appeared HERBERT W. WHITNEY, City Manager of the City of Corpus Christi, Texas, known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same for the purposes and consideration therein expressed, and in the capacity therein stated and as the act and deed of said City. GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the , 1966. THE STATE OF TEXAS . COUNTY OF NUECES ' day of Notary Public in and for Nueces County, Texas. BEFORE ME, the undersigned authority, on this day personally appeared B. V. BALLENGEE , known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the , 1966. day of Notary Public in and for Nueces County, Texas. THAT THE FOREGOING ORDINANCE WAS R FOR THE Fl ME NO PAS D/ TO ITS SECOND READING ON THIS THE DAY OF 19 G , BY THE FOLLOWING VOTE: DR. MCIVER FURMAN JACK BLACKMON PATRICK J. DUNNE DR. P. JIMENEZ, JR. KEN MCDANIEL RONNIE SIZEMORE WM. H. WALLACE • THAT THE FOREGOING ORDINANfE /WAS READFOR TO ITS THIRD READING ON THIS THE // 50 DAY OF BY THE FOLLOWING VOTE:F DR. MCIVER FURMAN JAL JACK BLACKMON* PATRICK J. DUNNE r, y DR. P. JIMENEZ, JR. KEN MCDANIEL RONNIE SIZEMORE x WM. H. WALLACE r ME, AND PASSED THAT THE FOREGOING ORDINANCE WAS READ FOR THE THIRD TIM FINALLY,ON THIS`'THE /(„ DAY OF 7-%10.4 , 19E6 FOLLOWING VOTE: N ATTEST: DR. MCIVER FURMAN JACK BLACKMON PATRICK J. DUNNE DR. P. JIMENEZ, JR. KEN MCDANIEL -r RONNIE SIZEMORE k WM. H. WALLACE PASSED AND APPROVED, THIS THE // DAY OF r Y SECRETA APPROVED AS TO LEGAL FOR ` IS .07-4' DAY OF Gv.%i&/`W/ , t 9�0 CITY ATTCCRNEr ?OR pm. THE=CITY OF CORPUS CHRISTI, TEXAS, 1 AND PASSED , BY THE 1, a Notary Public, D being first duly s ... of the Corpus C sti, Texas, in said Co iia Colony land blished in and=112:Z=...2_.t.ilnea thereafter arch 17,1966 ae this ZZ day of March Not Public, Nueces LJBLISHER'S AFFID, STATE OF TEXAS, }„, County of Nueces. Before me, the undersigned, a Notary Public, ti Leland O, jaarnea who being first duly sv, ClpAiried Advertising Manager of the Corpus Ch • Daily Newspapers published at t orpus Christi, Texas, in said Co t&fia--An 9r!dixtap.e_e_authoriming-anEl_dir.eating_ out of lots 5 C b, sec. 3, Bohemia Colony land AN ORDINANCE AUTHORIZING A/40 DIRECTING THE CITY MANAGER TO EXE. CUTE, a^. AND ON BEHALF OF TI 'TY, AN OIL AND GAS I ON 87.252 ACRES OF 1:6 LOCATED GUT OF* LoTS 5 AND 6, SECTION ,S. BOHEMIAN COLONY LAN 5 5, NUECES COLINTY, TEXAS, WITH B, V. BALLENGEE, / FOR A FIVE-YEAR PERIOD, BEGIN. NING APRIL 15, 1966, AND EX- PIRING APRIL 14, 971, FOR A CASH RONUS IN ADDITION TO ALL OTHER CONSIDERATION SET OUT IN THE LEASE FORM, 162 704TEF'uToi'pvANCE ALL SET OUT IN THE LEASE AGREEMENT, A COPY OF WHICH is ATTACHED HERETO AND MADE A PART WHEREAS, 9119 CRY Counoll.hos heretofore adopted specifications and duly made publication as ,required AY Charter and received 6966 an January 26, 1966; and WHEREAS, 96, bld 85001 .485.9, fooeous 90 the City, aOer conscrg: 1=0h Is 611ro '1%1T1 lel 'col best bidder sIdtrnlitino a iota on the basis prescribed In the Notloe for Rids, Is the 6585 al B. V. Mallen- ys that he is the s Christi 'times, e publicatioh of -of which the annexed is a true copy, was published in The Time on the 1/1- day of FebrilarS 19 66 , andratiPurax. 2 ti.ntea thereafter xlmealarfte..namely...Eahruary-17,--March 17,1966 3. 1 4 k Times. •• $ 249-,99 /10' Aridef/W4L--- .na ger ' 19 66 #,Cia s s To' AdVert1 drhg Subscribed and sworn to before me this ag day of March .27;_ed Not Public, Nuhces County, Texas • ' Louis e Vick • • gee for a eft, .1 term et Ilse (S) ▪ years: NOW, THEREFORE, 50 IT OR. FITE TTO COUNCIL OF CIYF-CORPUSCIt Ti, TEXASt SECTION I. That he Clly Morn alter H hereby authorized and di- rected to execute, for and an be- holt of the City, and to deliver the I .0M , an Olt and Gas Lease 005• Bring 07.2M acres of land, located out of Lets S pod M Seaton 3, Salemlon Ulan,/ Lends, Emma tinny Teem, sale' Mere to be wlh R. Vr Ralle,tgee, eveelnq . Ovayear perlad, betnnlap 1' 1 I nee, and <00905 APrll 1%, 1 fora cash bonus of 79,136, me re. ,a • dd the CIty, which p of which to term. are mere *0 eat forte In the Lease Agreement, a copy I which Is at. lathed herele ed made • pert hereof, . OIL AND GAS LEASE THE STATE OF TEXAS COUNTY OF NUECES THIS AGREEMENT made Ilia 15th day -of April, 1966, between the City f Corpus Christi, Lees0r, and B. V. Ballengee et Nuetes County, Texas, Lessee, WITNESSETH: 1. Lessor, 10 c.131fderalfon bf a • cosh bonus of 09.136.00 M esh In s 'hand paid nd other good and I. $sale cemla ratlen, f n e royalties ' herein provided, and ° the ree- h.ls f Lessee erein o twined. 1. heeby grants, teases, and sets ex. elusively unto Lessee far the pur- pase of InveINO011nu, minInon , psas- ...cm. 5ting, ollnand mining far one n s nd ui end ens, to pr MPs mite and building tanks, trea. produce, 0151 fake core rn fret, ,1 1011ow, IN) own god preclude, es fallow. 1 Texas, ,50 described land In Nuetes County, cWt6 T .25 }acres: 17252 v of fon, t t Lets C d b, ANDS. 3, BONC..11AN COLONY LANDS. Nuetes County, Terre, more o ticularl a described b wmetes and bounds s follows, 'BEGINNING ot a point In the •Northeast right of Way 1111. of 40 foot wide Holly Road said point being N 29 degree 00' 20" 5, 60.0 feet from the most Southerly corner of Lot 5, Section 3, Bohemian Colony Lands. 01 THENCE N 41 degrees 30' 114'11 sale Northeast rtdis of way Nally distance e 707.13 feet to 0, po far the meet South- westerly corne r of the 11a05 htfflR described; THENCE N oo 29 degrees E wfig th1 Three Southeast Welding baquipm Ilne of Big 9.3 acre 0,00*,, er dl lance et a 761.69 feet to a point for an Interior or• I " of the tract herein descr)bed: THENCE N 61 degrees 30 W with the Northeast boundary line ,of 51Id 93 acre tract a distance of 8.60 feet to a point for a corner aT the HENCE°h5* herein egedescribed; dis- tance • Infe 332.0 feet to a the had point *01 herein described;x`r of THENCE N 61 degrees 301 W a distce of 3150 feet to a point for scorner of the tract litr,ln de- cribd; THENCE N -i9 degrees E 0 dis- tance f 53433 feet to a point for an Interior rner of the tract h`THENCE N`6S degrees 30' W a distance of 1050.00 feel 10 q point In the Southeast right of wqy 110. at 100,0 foot wide Ayers Street for o THENCE this degrees E with 1 117e Southeast right of wqy PM al 9' 20693 teeth» Street point tar in corner of this tract, sane being the South. west comer of NI0 Hy9,10 5.0 0Sra r 1 THENCE S 41 degrees 16' 50" E With 111. 5eu)hwesl boundory line of sold 5.0 acre tract a distance of ' 713.60 feet to a polo) for 0d Interior . comer of flee tract herein described; he THENCE bpllii"dary line of said ' 5.0 acre tract and Its extension, • distance f 367.0 let to a point ffor an Interior corner of the Iran( herein described: a W THENCE distance of 328A feet t030, paint for a corner 01 this tract, car- nre r o8°rhe Louis Needham 2.6 per. tract; the Southeast. boundaryline at mid 26 acre tract a 410101100 of 143,25 feet le s Pohl for a corner of this tract, mold paint being the South. I Subdlvls100 Annex asaeshowp by"r*009 t or plat f reused In Volume 24, &age 4Iee: . Rueces Canny, Texas. Map • KK whit Etlhe65outhw. I boundary line 4" f sold Lot 5 and Lei b, Lexington • Sobd)9lalon Annex a dlftance of 271.00 feel to 5 pain) for a Warner southeastrorner of soldiLot 6, Lew 1n THENCE 114 29 Anex; E with the 5autheesl boundary Iona of WO Let 6, Lexington 51014101,1,0 Annex. distance of 10.21 !eel t0 a Mint to the common boundary Iona of Lots 6 and 7, SHIM 3 al said Rehelan Colony Lands for a cor- ner at Ihls tract; THENCE 5 61 degrees 30' 10' E With said common boundary line of • Lets 6 and 7 aSection dla050. of 1930.11 feet la the common corner of Lals 6, 7. 2 and 3 5ecllan 3 Bohemiaq Colony Land. for a car, per of this stract; w 111 t1* THENCE bound Wander/ line et p)d Lots 6 and S Stollen 3 5, ' hemlon Colony Lands a dlslanee of 2579.09 feet to he place of begin. m15a Lis 00 s his itesl0m shit cm• duci no drilling he surface p0 other te 954 there Oleased the rfaWa 1 the hundred fee 1300'1 °r ° within th lane h ereby leased unless and until the approve' of he Lessor Is seared a to the actual !Konen on Pram property and the. actual 055500055 to be conducted prior to he cam• m ncemeal of such operations. , her6h °bcap`pta to e d,lrMrex`leasevl .tall he far a term of five (5) years , ierrm ")thasddas Ions (coiled "primp/ 0as 11, n or other mineral U pre. 1 duced sold land hereunder. 3. The royalties to be paid Lessor are sixteenths (116) (3.116)Ijoflethat produced and saved from said land, the same to he delivered at the ither pip' line to winch the wells may be 1e time purchase any from fy apron its *5.ssesslan, paying inth° f market Meld vmerexrppjredt eel en ih data rf porc0h°,; (q) an 01. Incident. 0051,5, loduced 01,110r115i NM and fold or used aft the Premises or In the manufacture of gasoline or other product therefrom, the ma, tees value at the well of M less than- reedixreenths (3•t6) f the Dos s° 0 10 or ova, Provided tMt en hhallt beneales, thane three- sixtteeenths (346) of the amount ealeed from such let where gas a 0.61 11 used,ctLesseee smay, for . ,000Imani rot two (2) years beyond the pri- mary term, pay as royalty Twelve Hendee (11200.00) Dollars per well per year, and pan such payment It ill be c nsldered that gas Is being produced within the n eaning al Noragraph 1 hereof for s h period. not exceeding two years be- yond the primary term, Lessee shall lave free tae of 11 and gas from said hand, for all °per °rlans here- under, and the Molt,/ oft ll and gas shall be computed after ea dullqing any so used. Laser Is ex- empt • all 5Tato not Temala. Meee"rdn0, Woos en ell and gas, r d no des auctions 10000 °IIn be made settlements. loot Lessee powler tg,pool OrryWmbine the land covered 6v this lease any portion there., for gee r Ni with anY ther land, lease or leases looted adiacerl to or contiguous with, when in Lessee's lodgment 0 Is noCessury or advis 4 10 d Se In der to properly develop and n tifY alts Lessx.x provided "that° q unit for pas created shall ex. ford ll shall acres saarea 45" and 141 pooled acreage. 01.09,..tiIt Is be 15.0104 lease; whether) 11,0 Dell orf this be located on the Premises covered by 1.17 this lease or nal. In lieu al the royalties elsewhere herein specified, Lessor shall receive on production fpm a snit a orkg only N harden f the ount 710 5011. age placed the n the 01tt or his revs* *5 I tell Interest therein Dear. 10 the te I ge pooletl the ,00650, nit Involved, but In no event less than T5515e Hundred 1$1700) Poi tars In any one year .0) commenced m solve "land ° 019 or before Fix months Irem ass gate me lease shall terminate .10 bath parties unless ° r before such .rt ednnti Les.,, 11 10 *5* eredn ' et Lesser M Corpus Ch1),)) State National Rank ot Carpus Christi, .Texas, (which Rank -and Its sue. continuo . Ltthhe depoossitory for hall rends Payable hereunder regardless el changes In ner,hle f sold land er he 0 9101s) the sum of es a"0306IrnhriJ Drillers (4,2), (herein con. 001, A rental) which shall cover the prly+ of Waring tommencemeM 1 ddrr Hn. aOerotNns 7051 a *51504 M 900 lf) 150Mhs. In Ilke manner and upan l*10 *OYm tenders of d+ei`.gr"e rarna ales br f Whet Ix (4) onthfU001. during the pri- mary term. he payment of lender of rental may be made by the rneck or draft of Lessee moiled °r dlverad 10 Bid 00.4 h .r 'out; ter• pth date qr 907709(. N act Banl(m(or airy mllnr! Bank) sMUIJ • fanotherrr Ban14 er ea 1 0Seedld by 051 sar rented. .Les- sae st ll not f0 held 60Les- e (ensee War o. .05 In default ter der 00 make such povinynt or fender f rental until 5110 thirty 0110 I30e doss slier Laser Wad deliver Leah pve ger recordable Infra 5900 0 1100g a00ther honk s 1 Agent 10 calve such payments of . 1, 0.5, The down cash Payment Is consideration tar this lease 01, allocated 0t Ire tom r and chef net be . Btin. mere rental for period. By he term 0 ePer01) (pr drll19e0 end tl1lhna pefatl0ns^ Is 1n:Pnt ref 1001( drgitr I1nn10 the earth 1, Neatd r mine is end pot 011, 5 r then a minerals n1 pot m4eq he placing of fnata flats 0pP• to e5. d)000 en the *) 01' 4. le Peter to land discovery . all .r gas M old lam! Lessee 05, 'r drill a by hale 5151 holm thereon or • N after dlst ergo of all r ,, the anydcauan herof shell these 0 m fAC °Ifs 10,00lease moll net term! - mmMtes 00m- t10n01 dr1111gg fe•werkine pe ra clam Wlfhin Irty (e days ire tier te I)f It m ces o. the yies the mery eovmMf or tender of rental. en or before the rental 907)05 elate next ensuinp after the expiration of ( three menthe from dole of.comle- flan of dry hole , a ce sation f 4100 rnrnaiy rrerm tint a tone 45 t mineral le not being are °°reed ° a 1054 but Lessee Is rthen en- $ • *eaed In drilling r kin ep- 00011.ns thereon, the 40010 el.)) ra main In farce se Iona at operations are mare rosemgeed thirty )14 no cessation (tai consent* ffiPirvre doses ond,lf they result h the flserdeoflern °s9elflor ors Is oroelueeh or welled PSOdodngtpelt er geSwIn ' fn° 100 gotiMgles, should be brought n 9 m land 0 I w.d . 4a7 .set N e1 tl ogre the aril rtem- 1 Lens a arm to )79 h offset W'Ilsoust Ir5,51 ty plfde t M "et et similar elIr, nstane 55 its 7, Lessee shall have he 11051 at e any time amine r within six (a 4 months of the expiration f this • tease to remove all property and Haan placed by Lessee said es, draw end land, all casing. Lessee '101) b surface, age n 36 Inches be erns e within two hundred (200) feel t y structure o sold tend wleho0t Lessor's consent, 1. The rights al either °Orly here - edP`rrtmos assigned In whole or Shall xle0 fo tin 11000, 5Utea M 0 Owm, but no change or re▪ ntals, 1n awnehhia at the land, rentals, Or royalties, however ad- vAn1PII.lI1d, shill OgefaN to CM r igida of Lessee. No sole' or tar 4 iNnment by Laser shall be binding en Lessee ntil Lessee mail he , furn1s5ed with q certified my of recorded Instrument evidencing game. In (Wept of aslanment f MIS lease as to a swngoted dor- gm of sold lend. the rentals pay 1 ▪ le hereunder shall be ap5Ortiena ble as between the several leasehold Owners ridable according to the ila are° t each, and default n rental payment by by Nee shell net ,wo• o the riahtl f other fees mold miles became `enllpedl 10 rrayal7, q eeymeent thereof `unleess andlm00)11 furnished wIth a recordeble Instru- , meet executed by on such Pertle designating an agent to receive pay. Men, far 011. 9 Lase, hereby worrnnh and land and agrees that L0,70. asold ts • anion tl mintage& mew ether PM NM Upon sad gene ,d In event Lessee den se, J Wt Shell be 111 10 sled to such DM ; with the right to emoee sema and hereruunder toward royalties ino sane Without Imeg1rmenl of Lessee's e rights under the warranty In event f failure et 11Rt, (1 h agreed ins If Lessor mole an Interest In 010) IoM *state, less then the entire fnee ie gip j Praportlonately000, shall be reduced 10. Should Lessee be prevented f from complying With ny express , or Implied covenant of this lose, from conducting dnllll err, worklna e0eratlans thereon ar from producing oll or was therefrom by reason of scarcity of or Inability to obtain ar 10 use equipment or materiel, or by operation N force 0, • ,ny order, Federal law r governmental authority. then_ while Le0See, Lessee's through no to faint ▪ l such es shall be Lessee shall not liable In dom0ges far 'allure to 00m• Ply therewith; M tills lease shall be extended while and " Now es Lessee Is prevented by any such ree-workin�g *wallop* or talrnaPre- /lacing ell was from the leased 5 mgs end the time while Lase. °a0lprevented shall net be counted pst Lessee, 00y11100 hp his maze t° the contrary notWlfhgglNY strumRewnt Is execcute EInFl40 11101, ATTEST :rote first abet* written. Cloy are ,OF CORPUS CHR15T1 By • Herbert ya W. y, Whitne APPROVED A; TO LEGAL FORM THIS 0th DAY OF FeSEb 0.rY, 1966, LESE LESSEE a • Roberl.E. Young V, Bal(enq,. • Assistant City Aherne. THE STATE OF TEXAS COUNTY OF NUECES BEFORE ME, the Wkbnle eel o- he . h Reared a ageraof the W. of Cargo Christi, Texas, known to me to be the pecan whose from. Is sob - Krlbea to the txrex°Inp Instrument Me eokgeyNdRed to me that he executed the gems ter the awposes hid cens1,.ra, 0 herein therein staled ., and • In the Pad deed sate City. ° GIVEN UNDER MY HAND AND SEAL OF ONCE, this the, day of N °umgesp Countg. )Texas torsi COUNTYAOP %EC- XAS i g1 A BEFORE ME, the 0,dd signed au. 1 therlty, n this clay personally ap- peared B V. Ballengee, known to me subscribed person to the foregoing In• ' Strument, and acknowledged to me p roeses cone t cons derationn for `GIVE d N UNDER MY HAND AND SEAL OF OFFICE, this the day x Notary Public In and for Thal M0.0.s County. exas, heon for h. 0,0* 1lme *004 co jeer 111 .Kane reading on 15)11 the elh tiny of Februeryr spdi, by She f Dr, �g vein: Dr. rAelvOegrn Furman Ave Atdrieka J. Van., Aye Dr. P. Jimenez, !f• Ave h Ken . 0, lIN R0on1. d,xemm Aye 15. WOI.o o Thal tin (secondI a and p Awes reed for the 0,041, tale an. tossed to Its hied rsa on f the 16 day al Feb,. 1966(4,, by the fpllawlnv vote: • Dr McIver Furman Ay. Jack Blackmon Aye 1 0, 9. i Dunne Ave Ke P. Jimenez, Jr. Aye Ken a 3Ixe el Aye'' Rennie Sliemoro Aye rat H, Wallace Ave That he tareema alnd pa was fed ter the third time and shad - 1044, an t0 fOIIr 161, 00) al March. t 1962, by fhe f*551wing vefo; DC higher Furman AbAve Jack Blackmun Aye Dr, 0. l Dunne Aye Ken P. McDaniel Jr.' Ave Ken Rennie Sirem1 Ays Wnl. S apace Ab40. PASSED 5160 Ayes tine 16M dqy 'O 0h. 1946- this ATTEST: City Secretor, 7. Rey gripe 1161h DOAY OF MARCH, 1966 THIS City Attorney 1 M Singcr Mayer • R Furman THE CITY OF CORPUS CHRI5TJT • 1N314121Yd30 1tl (37 Mal ' I IS 12IHO Sf1dJO3 J O Al I O • After 22 years 'GOING OUT OF BUSINESS SHOWROOM OF rJNER FURNITURE } ' AUCTION Saturday, March 19, 1966 11:00 AM Sunday, March 20, 1966 i ,1 :00 PM 533 N. Broadway . Corpus Christi, Texas 3150,000 valuation — The finest of custom -mode and Decorators furniture, ryas, carpet, lamps, etc, — office furniture and equipment, and fixtures. We will offer for sale:at public auction Merchandise represented in this auction represents re most respected names In the home - furnishing industry. - The finest custom contemporary livingraom, dining room and bedroom furniture, outstanding pieces in French. Provincial, English and Oriental reproductions, fine accessories, pictures, porcelain and Decorator's lamps, custom -mode modern sectional sofas In the finest fabrics, imported and the finest of 'domestic oc ca con- temporary onal. and contemporary chairs, tables, marble topand• reproductions, 'commodes, desks, bedroom suites, reproductions in contemporary, walnut and cherry, din'- ing room groups clocks, lamps figurine, statues, the finest In rugs and carpets, outstanding chandeliers and wall sconces, and an abundance of interesting items Or too numerous to mention. Office equipment and fixtures incldding desks, chairs, adding machines, Monroe calculators, bookkeeping machine, tiling cabinets, 11/2 horsepower compressor and tank (point mom), all the fine carpet an the floor. Many other items. Approximately 3000 yards of dropey, upholstery fabric, decoration pillows, bed spreads. Open for inspection daily 10:00 AM to 4:00 PM Sale conducted by J. KAHN & ASSOCIATES, AUCTIONEER. Terms of Sale Cash or Certified Check. full settlement each day. Deposit required from all Bidders. For Information call TD- 3.8448, Corpus Christi. _ ri